Quiz - Partnership

On September 30, 2010, Mr. East admits Mr. West to a partnership interest in his business.
On this
date, his critical account balance showed P185,400. The following adjustments were agreed upon:
 Prepaid advertising of P17,100 and accrued salaries of P2,400 are to be recognized.
 It is estimated that the amount of inventories shown on the statement of financial position
included slow-moving items amounting P1,440.
1. If Mr. West is to be credited with one-third interest in the partnership, the amount of cash to
be invested should be:
a. P66,220 b. P86,550 c. P99,330 d. P100,050
Rodel, Mahal, Gerry and Mura formed the Enchanted Partnership on January 1, 2012 with cash
contributions from Rodel, P100,000; Mahal, P5,000; Gerry, P50,000 and Mura P40,000. The partnership
agreement provides that profits and losses are to be distributed as follows:
a. Interest at 5% of capital contribution of the partners.
b. Salary of P10,000 to Rodel and P6,000 to Mahal.
c. Gerry to receive a minimum of P5,000 per annum from the partnership and Mura a Minimum of
P12,000 per annum, both including amounts allowed as interest on capital and their respective
shares in profits,
d. The balance of the profit is to be shared in the following proportions: Rodel, 30%; Mahal, 30%;
Gerry, 20% and Mura 20%.
2. How much is the partnership profit if Rodel received an aggregate of P24,000 including interest,
salary and share in profits?
a. P78,000 b. P62,000 c. P58,000 d. P48,000
3. How much should be the partnership profit in order to give and satisfy the minimum share of Gerry?
a. P78,000 b. P62,000 c. P58,000 d. P48,000
4. How much should be the partnership profit in order to give and satisfy the minimum share of Mura?
a. P78,000 b. P62,000 c. P58,000 d. P48,000
5. IF the partnership profit is P28,000, the profit distribution to the partners is
a. Rodel, P12,750; Mahal, P6,250; Gerry, P1,000 and Mura, P8,000
b. Rodel, P8,400; Mahal, P8,400; Gerry, P5,600 and Mura, P 5,600
c. Rodel, P5,500; Mahal, P5,500; Gerry, P5,000 and Mura, P12,000
d. Rodel, P7.000; Mahal, P7.000; Gerry, P7.000 and Mura, P 7.000
6. If the partnership loss is P2,000, the loss distribution to the partners is
a. Rodel, P3,750; Mahal, (P2,750); Gerry, (P5,000) and Mura, P2,000
b. Rodel, (P 500; Mahal, (P 500); Gerry, (P 500) and Mura, P 600
c. Rodel, (P 600; Mahal, (P 600); Gerry, ( 400) and Mura, P 400
d. Rodel, (P2,750): Mahl, P3,750; Gerry, P2.000 and Mura, (P5.000)
On July 1, 2012, Sayonara Company has the following balance sheet:

Assets Liabilities and Capital
Cash……………………………….…. P20,400 Accounts Payable……….……….. P38,400
Other Assets……………………….219,600 Due to Palmer…………..………… 14,400
Other liabilities……………..…….. 84,000
Palmer, capital - 50%…………… 28,000
Larsen, capital - 50%………………………74,400
As of July 1, 2012, the partners have personal net worth as follows:
Palmer Larsen
Assets ………………………………….. P62,400 P91,200
Liabilities………………….……………. 56,400 122,400
7. The personal net worth of each partner does not include amounts due to or from the partnership.
Assume the other assets are sold for P123,600 after incurring liquidation expenses of P4,800. How
much should Larsen receive?
a. P -0- b. P22,800 c. P24,000 d. P16,800
JJ and KK Partnership’s balance sheet at December 31, 2012, reported the following:
Total assets………………………………………………….P 100,000
Total liabilities………………………………………………20,000
JJ, capital……………………………………………………. 40,000
KK, capital………………………………………………….. 40,000
8. On January 2, 2005, JJ and KK dissolved their partnership and transferred all assets and liabilities
to a newly-formed corporation. At the date of incorporation, the fair value of the net assets was
P12,000 more than the carrying amount on the partnership’s books, of which P7,000 was assigned to
tangible assets and P5,000 was assigned to goodwill. JJ and KK were each issued 5,000 shares of
the corporation’s P1 par value ordinary share. Immediately following incorporation, share premium
in excess of par should be credited for:
a. P68,000 c. P77,000
b. P70,000 d. P82,000

Quiz - Partnership

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On September 30, 2010, Mr. East admits Mr. West to a partnership interest in his business.

On July 1, 2012, Sayonara Company has the following balance sheet:

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